Sound Oil, the upstream oil and gas company with assets in Italy and Indonesia, is pleased to announce the appointment of the Italian engineering company CSTI Srl as engineering contractor for the Rapagnano Gas Field and a related funding contract.
Sound Oil has appointed CSTI to undertake the surface and facilities engineering for the Rapagnano project and has also signed an associated funding contract with CSTI.
The Rapagnano field, located in the Fermo Province (Marche), onshore Italy, was discovered in 1952 and produced 4Bscf gas from the Pliocene interval until 2001, when the well was shut down because of water influx from the upper of two separate gas-bearing reservoirs. Sound Oil intends to re-complete the lower reservoir which has produced gas with minimal water for over 40 years. This interval has an estimated 1.3Bscf gas reserves (P50) remaining which will be produced over a period of more than 10 years.
The Rapagnano project requires a total of approximately EUR 960,000 capital and is estimated to achieve payback in approximately 12 months in the base case.
Final approval from the Italian authorities for the Rapagnano development is expected shortly.